DP16597 Circles of Trust: Rival Information in Social Networks

Author(s): Samuel Lee, Petra Persson, Nikita Roketskiy
Publication Date: October 2021
Keyword(s): Rival Information, Social Networks, strategic information transmission
JEL(s):
Programme Areas: Development Economics, Organizational Economics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=16597

We analyze the diffusion of rival information in a social network. In our model, rational agents can share information sequentially, unconstrained by an exogenous protocol or timing. We show how to compute the set of eventually informed agents for any network, and show that it is essentially unique under altruistic preferences. The relationship between network structure and information diffusion is complex because the former shapes both the charity and confidentiality of potential senders and receivers.